All parents want to save for the future of their children by investing in different policies. One such policy is the HDFC Life Child Plan, a dual-benefit plan that can be purchased to take advantage of the dual advantages of insurance and wealth accumulation for your child.
Purchasing a policy to insure your child’s future is a very important decision that requires deliberation. Now, there are many things to consider before purchasing a plan to get the maximum returns. In this post, we discuss the HDFC Children’s Plan in detail, including the plan calculator benefits.
The HDFC Children’s Life Plan Calculator checks the plan premium rate the policyholder must pay to take advantage of their benefits. Therefore, the online tool tells you about the benefits you are likely to receive instead of the money you invest in the plan. The calculator uses different variables, such as inflation, interest rate, child’s age, etc., to determine the premium rate for each specific plan.
Now, let us understand the HDFC child plan in detail.
Child Insurance Policy
So what is a child insurance plan? A child insurance policy is like a guarantee that parents can take advantage of to ensure the future of their children. This is one of the practical ways to constantly save a part of your income for the future of your child. This way, you can meet milestones set for different purposes, such as your child’s higher education, your marriage, and
other life goals that need financial assistance.
What is the HDFC child insurance plan?
HDFC’s Children’s Dual Benefits Plan is a traditional children’s insurance policy that is available with a wide range of benefits. Under this plan, the policyholder (or parent) purchases the plan while the child is the beneficiary or recipient of the benefits. Therefore, this plan protects the child’s future in all circumstances. For example, if the insured or the parent of the child dies during the policy term without paying the full premiums, the plan still protects the child and allows them guaranteed returns.
In general, this policy guarantees the comprehensive protection of young people. In addition, if parents want to offer additional benefits to the child, they can opt for the Accelerated Benefits Plan. This allows the child to receive benefits in the form of Sum Insured + Bonds at maturity or in the event of the death of the parents. The lump-sum payment your child receives in the future can cover their plans for higher education, marriage, or a career.
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Why should you buy the HDFC Children’s Dual Benefits Plan?
One should purchase the HDFC Children’s Dual Benefit Plan because of its various benefits. Here are some of the benefits offered by an HDFC Child Double Benefit plan:
1. The plan offers death benefits to the child in the event of the death of the insured (parents):
Since the candidate for their children’s insurance plan is your child, they receive death benefits in the form of a sum insured in the event of the sudden death of the policyholder. In addition, depending on the particular plan, the candidate may also receive additional benefits under the plan. For example, the insurer might waive premium payments for all remaining plan premiums to allow the candidate to be paid under the terms of the policy.
2. The plan offers expiration benefits:
Since child insurance plans are different from regular insurance plans, expiring benefits under such plans are received in three alternatives:
- The child receives a lump sum after reaching adulthood
- The child receives a five-year payment for his education. In this case, the child receives 15% of the sum insured per year for the next four years of college. The rest of 30% of the insured sum will be offered in the last year of your education.
- The candidate receives the benefits of the plan to develop his career. For example, the nominee gets 15% of the sum insured in the first five years as an annual payment. The remaining 40% is paid at maturity
3. The plan offers other benefits:
Depending on the duration of the premium payment (if it is 10 years or more), the plan offers additional reinforcements to the beneficiary
What is the need for the HDFC Children’s Dual Benefit Plan Calculator?
Here are reasons why you should use the HDFC Children’s Dual Benefit Plan Calculator:
- The calculator can be used to estimate the amount of premium the policyholder would pay to achieve the child’s particular milestones.
- The calculator helps policy seekers consider the risks associated with the plans. Depending on the type of client (risk averse or risk taking), you can choose a plan like ULIP or Term/Savings Plan, etc.
- The Children’s Plan Calculator also helps policy applicants choose a premium that is affordable.
- Depending on the requirement, policyholders can include riders in the child plan and calculator to see how benefits or premium differ.
- The calculator also offers a detailed understanding of the guaranteed returns available in the plan.
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In general, you’ll find that HDFC’s Child Savings Plans are dual-benefit policies that not only cover the life of the insured, but also help build a corpus for your children’s future. Please read the HDFC Children’s Life Plan brochure carefully to understand the plans and their details before purchasing the policy. Also, to ensure you get the desired benefit from your plan, you can use the HDFC Life Children’s Plan Calculator to evaluate policy benefits before purchasing.
Frequently Asked Questions: HDFC Children’s Dual Benefits Plan
What is the age of entry into the HDFC Children’s Dual Benefit Plan?
The entry age is 18 years (for insured). The minimum term of the policy is 15 years, with a maximum of 25 years.
Can I invest in a Fixed Deposit (FD) from an HDFC Children’s Plan?
Yes, HDFC offers many child plan Fixed Deposit (FD) schemes to invest.
What is HDFC Life Youngstar Udaan Kids Plan?
This is a plan specially designed by HDFC for parents who want to secure their children’s tuition costs for higher education or education abroad, as well as to achieve other goals like marriage expenses, etc.
What are the various HDFC early childhood education plans available?
These are some of HDFC’s early childhood education plans:
~ HDFC SL Youth Super Premium
~ HDFC Click2Wealth Premium Waiver Option
~ HDFC Life Youngstar Udan Plan
What is a child insurance policy?
Children’s insurance plans are a combination of insurance and investment products that ensure your child’s financial security for the future.